Aibnb, a new darling in tourism as hotels struggle to maintain market share

This shift has put significant pressure on the hotel industry. Many hotels have attempted to adapt by offering extended stay options and enhanced sanitation measures, but these efforts often fall short in comparison to the personalized experiences offered by Airbnb hosts.

In a surprising shift within the hospitality industry, Airbnb apartments have begun to dominate the accommodation sector, leaving traditional hotels struggling to maintain their market share.

The innovative approach to lodging, combined with the increased demand for affordable and flexible housing has led to significant changes in how tourists and families find temporary residence for their vacation.

Traditionally, tourists and families relied on nearby hotels for short-term stays However, the merging trends have accelerated the shift towards more private and flexible lodging options, propelling Air bed and breakfast (Airbnb) and apartments into the spotlight.

The rise of Airbnb and other apartments as a preferred choice for accommodation is a new concept in the hospitality sector that marks a significant transformation in a multisectoral landscape raising eyebrows leaving hotel owners to think outside the box.

Jean Byamugisha, the Executive Director of the Uganda hotel owners association (UHOA) says Airbnb's model offers several advantages including a 360 feel at home experience that have proven appealing to those seeking accommodation.

The ability to book entire homes or apartments provides a sense of affordability, privacy and normalcy that traditional hotels often cannot match.

Airbnb have been cheaper than hotels and most people especially families would want to go for something they can afford and Airbnb are a home away from home considering that they have most things within them," Byamugisha noted.

In this apartment located in the outskirts of Kampala the availability of kitchen facilities, spacious bed room and comfortable living spaces helps families maintain their routines and reduce overall costs.

Yogi Biriggwa, a hotelier and president of Uganda tourist association says most visitors from the African continent are running away from hotels because of expensive accommodation packages which are brought up by exorbitant taxes they pay.

"We as hoteliers we pay 26 different taxes, taxes for swimming poor, taxes for bar, taxes for rooms, taxes for alcohol and facilities and others. It makes it hard for visitors because it becomes expensive as we hike prices for different packages," Biriggwa said.

This shift has put significant pressure on the hotel industry. Many hotels have attempted to adapt by offering extended stay options and enhanced sanitation measures, but these efforts often fall short in comparison to the personalized experiences offered by Airbnb hosts.

According to vacation rental research company, in 2023, Ugandans using Airbnb earned an average of Shs1.034 million ($279) per month by May. This was up from Shs563,350 ($152) in October 2022. During that time, occupancy rates rose from 16 percent to 43 percent in the six months ending March 2023 due to more investor travel. Graphics

The future of traditional hotels remains uncertain. however, Byamugisha says to stay relevant, hotels need to innovate and even focus on unique experiences and niche markets to create hybrid models in an increasingly competitive and evolving landscape.

" The introduction of Airbnb also force us as hoteliers to be able to up our game. We are trying to see how we can be able to tap into that market by having more facilities and amenities that can also make somebody who is staying in a hotel feel at home and feel sort of in Airbnb complex. Now many hotel rooms will have Kitchen where some body will have kitchen where somebody will have to Prepare their own meal ever through they are in a hotel Complex," Byamugisha said.

Uganda currently has over 6000 hotels among those only 37 are graded of which three are classified as five star hotels that is Lake Victoria Serena Kigo, Kampala Serena hotel and Protea hotel by Marriott in Entebbe.

The hospitality sector accounts for 90% of employment in the tourism sector, 58% of these are women.

Accommodation contributes 22% to the tourism direct GDP composition and it is the main contributor to tourism assets with investment in accommodation for visitors at shs 4.2billion accounting for 56.5% of the total tourism investment.